Castillo Copper provides strategic update

Castillo Copper’s Managing Director, Dr Dennis Jensen, commented: “The Board’s core strategic intent is to create value for shareholders via developing the core projects. With cobalt remaining over U$$70 000/t, the priority is to extend known mineralisation across the BHA Project’s East & West Zones via targeted drilling campaigns and formalising a clear path to market. Similarly, with copper above US$9000/t, the Board will apply the same formula for the Big One Deposit within the NWQ Copper Project. Concurrently, the Board intends to align with development partners to advance the Cangai Copper Mine and four prospective copper projects in Zambia.”

BHA Project – East & West Zone

Following the announcement of a shallow inferred mineral resource estimate (MRE) at 21 556 t contained cobalt (Co) metal (64 million t at 318 ppm Co) for the BHA Project’s East Zone, the geology team are defining an exploration target which will factor in several more prospects and deeper depths.

Further, the geology team are finalising planning and approvals for two RC drilling campaigns across the BHA Project. The first will focus on extending known cobalt mineralisation within the East Zone, while the second will test targets identified in the West Zone, which is proximal to Cobalt Resources’ Broken Hill Project.

Since announcing the MRE, the Board has been approached by several groups interested in becoming potential off-take partners and providing a clear path to mar-ket. To aid progressing these discussions to an eventual definitive outcome, the Board has dispatched diamond drill core – extracted from The Sisters Prospect – for metallurgical analysis and potential to create a cobalt concentrate suitable for down-stream applications.

As the BHA Project is listed on the New South Wales (NSW) government’s critical minerals list, the Board intends to engage with key stakeholders to see what potential support can be secured to aid developing the cobalt potential at a faster pace.

NWQ Copper Project

Big One Deposit

Having produced a shallow MRE at 21 886 t contained copper (Cu) metal (2.1 million t at 1.1% Cu), the Board has been reviewing the optimal paths to market. This has involved discussions with several parties with processing operations in the Mt Isa copper-belt region that are potential off-take partners. In tandem with this process, diamond drill core samples have been sent for metallurgical analysis and potential to produce a viable copper concentrate for downstream analysis.

The Board believes there is a reasonable prospect of securing an off-take partner, as many of the processing operators are operating below optimal capacity.

In addition, the Board is planning another RC and diamond core drilling campaign for the Big One Deposit which will focus on extending known mineralisation and elevating confidence in the MRE.

Arya Prospect

The Board is waiting for the final geological report on the graphite discovery, which will include a metallurgical analysis on the flake size composition.

However, as there is still strong geochemistry and geophysical evidence suggesting copper mineralisation potential, the geology team have developed another proof-of-concept campaign that will target a sizeable magnetic anomaly. This is interpreted to be massive sulfides with potential to host copper mineralisation. Note, this differs from the large electro-magnetic anomaly drilled in late 2021, which produced the graphite discovery.

Cangai Copper Mine

Like its sister project in New NSW, the Cangai Copper Mine features on the NSW government’s critical minerals list. As such, the Board intends to see the degree of government support that can be secured to aid further advancing the Cangai Copper Mine, considering it has an MRE at 107 589 t contained Cu metal (3.2 million t at 3.35%) and is one of Australia’s highest grading historic copper mines.

In addition, the Cangai Copper Mine still delivers significant exploration potential as there are several untested bedrock conductors that are interpreted to be open at depth.

Factoring in these positive points, the Board is in preliminary discussions with several prospective development partners to further advance the Cangai Copper Mine.

Zambia Copper Projects

The comprehensive geochemistry and geophysical campaigns undertaken at the Luanshya and Mkushi Projects in Zambia have identified multiple high quality copper targets for drilltesting.

Pleasingly, several prospective development partners have expressed an interest in forming a joint venture to advance these two projects via funding drilling campaigns.

Moving forward, the Board is optimistic that progressing discussions further could potentially secure an outcome.

Read the article online at: https://www.globalminingreview.com/exploration-development/10062022/castillo-copper-provides-strategic-update/